Story perspectives

OPM Gives Oracle $395.8M to Consolidate 100 HR Systems

6/11/2026

Summary

Story summary

OPM awarded Oracle a $395.8 million, 10-year contract for an HR platform covering payroll, benefits and Information Security Management Act (FISMA) / Risk and Authorization Management Program (FedRAMP) compliance.
After IBM withdrew its protest, GAO denied Economic Systems’ protest on June 1, clearing the award.
OPM will merge 100 HR systems into one solution with a rollout by fall and plans to cut taxpayer costs by 90 percent and extend support to 2037.

History

Historical Context

In 2001 the Department of Defense began a major ERP effort by awarding SAP a contract, building on SAP’s R/3 platform launched on 6 July 1992 and later integrated into SAP ECC in 2004. The 2024 OPM Oracle deal, cleared by the GAO after IBM’s protest, continues the shift to single-vendor cloud services and mirrors GAO’s 2015 finding that 58 % of DoD contracts were competitively awarded.

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Story summary

OPM awarded Oracle a $395.8 million, 10-year contract for an HR platform covering payroll, benefits and Information Security Management Act (FISMA) / Risk and Authorization Management Program (FedRAMP) compliance.
After IBM withdrew its protest, GAO denied Economic Systems’ protest on June 1, clearing the award.
OPM will merge 100 HR systems into one solution with a rollout by fall and plans to cut taxpayer costs by 90 percent and extend support to 2037.

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